Automakers are running on empty with higher interest rates and flailing investments in electric vehicles (EVs), and the battery industry that powered their green dreams is also losing charge. After two years of warnings from automakers, the battery companies driving the world’s EV boom are starting to suffer a similar fate.

• The CEO of battery producer SK On declared an “emergency” after the firm reported its 10th consecutive quarter of losses since its 2021 spinoff.
• Competitor LG Energy also saw its operating profit fall 58% year-over-year in its latest report, a consequence of slowing EV sales.

Delivery probs: UBS’s Tim Bush said battery producers offered overly generous terms to automakers and hyped EV newcomers. But with rates high and Americans pulling back on discretionary spending, automakers have struggled to meet order expectations — further complicated by the industry’s failure “producing high-quality affordable EVs” (FT). For instance, General Motors aimed to sell 1M EVs in 2025 — but sold just 21,930 in the second quarter of 2024.